Tech Mahindra to buy US-based healthcare IT services & consulting firm The HCI Group

Highlights:

1. The acquisition will not only position Tech Mahindra as a significant player in the healthcare provider space, but will also provide an opportunity to go deeper in this space via EMR implementation and surrounding services route, cited Tech Mahindra's MD & CEO C P Gurnani

2. The HCI Group provides end-to-end implementation of Electronic Health Record (EHR) and Electronic Medical Record (EMR) software, training and support services

3.  The HCI Group is a global leader in healthcare IT consulting with headquarters in Jacksonville, Florida and international headquarters in the United Kingdom (UK)

4. The acquisition deal is expected to close by April 2017 

With an aim to strengthen its position in the healthcare service provider space, Tech Mahindra has announced to acquire the US-based healthcare IT services and consulting firm The HCI Group.

The HCI Group primarily works with healthcare service providers in the US and UK, with focus on providing end-to-end implementation of Electronic Health Record (EHR) and Electronic Medical Record (EMR) software, training and support services. 

“Healthcare is one of the few sectors globally that is driving adoption of digital technologies. The acquisition will not only position Tech Mahindra as a significant player in the healthcare provider space, but will also provide an opportunity to go deeper in this space via EMR implementation and surrounding services route,” Tech Mahindra's managing director and chief executive officer C P Gurnani, said in a press release on Monday. 

Welcome to the Mahindra family Ricky & team @TheHCIGroup Let's #RISE together driving positive change for the #healthcare industry https://t.co/awJvHS1BVF

— CP Gurnani (@C_P_Gurnani) March 6, 2017

The HCI Group is a global leader in healthcare IT consulting with headquarters in Jacksonville, Florida and international headquarters in the United Kingdom (UK). It also has a presence in Europe, Middle East and Asia Pacific, and employs more than 500 professionals globally. 

Watch Tech Mahindra's CTO Atul Kunwar speaking on the acquisition of The HCI Group on Facebook 

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“I truly believe that Tech Mahindra is the right partner for us to improve the healthcare industry through a combination of disruption, innovation and cost reduction. What better way to support our customers than by joining with the global leader in digitalisation and connected technologies,” The HCI Group chief executive officer Ricky Caplin, said in  a statement. 

The transaction is expected to close by April this year subject to regulatory approvals, the release said.

The HCI Group’s services include enterprise-wide advisory services, with a focus on IT system implementation and training, as well as specialty service lines in integration, testing, go-live, clinical adoption, optimisation, HIMSS EMRAM and cyber security. 

Healthcare and Life Sciences has been one of the focus areas for Tech Mahindra globally and the acquisition will help in consolidating the company’s position in this space, cited the release. 

Tech Mahindra is $4.2 billion (nearly Rs 27,941.6 crore) company with 117,000 plus professionals across 90 countries, which helps over 837 global customers including Fortune 500 companies.

On Tuesday, at 14:40 hours, the stock of Tech Mahindra was trading up 0.21% or Rs 1.05 at Rs 500.30 on the BSE.  

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